October 1, 2022
mayank
Nippon India Nifty AAA CPSE Bond Plus SDL – Apr 2027 Maturity 60:40 Index Fund
NAV Growth: Rs 9.9439
NAV IDCW: Rs 9.9439
Suitable For Which Investors?
This is a fund that comes with a fixed maturity and invests in bonds whose maturity is in line with that of the fund. Upon the completion of the stated tenure, the fund is wound up and investors’ money is returned to them along with accumulated gains. They provide predictability (though not a guarantee) of returns because by staying invested till the end of its term, you can expect to get returns close to its ‘indicative yield’ at the time of making the investment.
They can be a viable option for fixed-income investors whose investment horizon matches the tenure of the fund. Such funds are more attractive when the interest rates are high, so as to ‘lock-in’ a high rate of return and benefit from it by staying invested for the entire fund tenure.
If you do decide to invest in them, remember that they are meant to deliver steady, but low to moderate returns and are not suitable to build wealth in the long run.
Fund’s Investment Strategy:
The scheme seeks to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty AAA CPSE Bond Plus SDL Apr 2027 60:40 Index before expenses, subject to tracking errors.
Fund Manager:
1) Siddharth Deb
Education: Mr. Deb is a B.Sc and MMS (Finance).
Experience: Prior to joining Nippon India Mutual Fund he has worked with Benchmark Asset Management Co. Pvt. Ltd. and Fullerton India Credit Company Ltd.
2) Vivek Sharma
Education: Mr. Vivek Sharma is a B.E (Electronics) and PGDM (Finance).
Experience: He has been associated with Nippon India Mutual Fund since 2006.
Investment Details
| Min. Investment (Rs) | 1,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. Withdrawal (Rs) | — |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0 |
Basic Details
| Fund House | Nippon India Mutual Fund |
| Launch Date | 29-Mar-22 |
| Return Since Launch | -0.56% |
| Benchmark | Nifty AAA CPSE Bond Plus SDL Apr 2027 60:40 |
| Riskometer | Moderate |
| Type | Open-ended |
| Assets | Rs 1,124 Cr |
| (As on 31-Aug-2022) | |
| Expense Ratio | 0.11% |
| (As on 31-Aug-2022) | |
| Risk Grade | — |
| Return Grade | — |
Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Nippon Ind Nifty AAA CPSE Bond + SDL-Apr 2027 Mtrty 60:40 Dir | — | 0.2 | -0.63 | 1.54 | -0.92 | — | — | — | — | — |
| CCIL T Bill Liquidity Weight | — | 0.06 | 0.24 | 0.73 | 1.03 | — | — | — | — | — |
| Debt: Target Maturity | — | 0.19 | -0.43 | 1.73 | -0.33 | — | — | — | — | — |
| Rank within category | — | 15 | 25 | 18 | 25 | — | — | — | — | — |
| Number of funds in category | 12 | 29 | 28 | 28 | 26 | 9 | 0 | 0 | 0 | 0 |
Peer Comparison
| Fund name | Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age |
| Nippon Ind Nifty AAA CPSE Bond + SDL-Apr 2027 Mtrty 60:40 Dir | Unrated | — | — | — | 0.11 | 1,124 | -0.56 | — | 0yrs 6mo |
| SBI CPSE Bond + SDL Sep 2026 50:50 Dir | Unrated | — | — | — | — | 7,134 | 0.42 | — | 0yrs 8mo |
| Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index Dir | Unrated | 1.23 | — | — | 0.16 | 7,038 | 4.34 | 0.10 (30) | 1yrs 6mo |
| ABSL SDL + PSU Bond Sep 2026 60:40 Dir | Unrated | 1.06 | — | — | 0.15 | 6,880 | 1.11 | 0.50 (30) | 1yrs 0mo |
| IDFC CRISIL Gilt 2027 Index Dir | Unrated | 0.69 | — | — | 0.16 | 6,279 | 3.26 | — | 1yrs 6mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 55 | 36 |
| Modified Duration (yrs) | 3.32 | 3.51 |
| Average Maturity (yrs) | 4.10 | 4.49 |
| Yield to Maturity (%) | 7.10 | 7.11 |
| Avg Credit Rating | AAA | — |
Chanakya’s Mutual Fund Guidance For Nippon India Nifty AAA CPSE Bond Plus SDL – Apr 2027 Maturity 60:40 Index Fund
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